Russian ruble hits new record low against dollar on cheap oil, sanctions

MOSCOW, October 3. /TASS/. The Russian ruble hit a new historical low of 39.84 against the US dollar under the pressure from falling oil prices, the backbone of the country’s economy, and rumors of new possible sanctions from the EU, analysts said on Friday.

The central bank said in the morning it had sold about $4 million on Wednesday.

The ruble remains in the high-risk zone, senior analyst at Nord-Capital Sergei Alin said. “Oil prices also look uncertain. And in addition to that - the tax payment period is still two weeks away. There have been no supporting factors for now, and the weakening can continue,” he added.

“The oil prices, which have confidently settled below $95 per barrel of Brent oil, are remaining the main risk for the Russian currency. The possibility of new sanctions against Russia in case tensions in Ukraine rise also does not play in hands of the ruble buyers,” Ivan Kopeikin from BCS Express said.

He said that even central bank interventions do not support the ruble strongly.

“Although correction is suggesting itself, there have been no strong drivers for it yet except the central bank interventions,” Kopeikin said.